H E L S I N G I N K A U P P A K O R K E A K O U L U H E L S I N K I S C H O O L O F E C O N O M I C S 4.12.2002Mikko Syrjänen - Systeemianalyysin, päätöksenteon.

H E L S I N G I N K A U P P A K O R K E A K O U L UH E L S I N K I S C H O O L O F E C O N O M I C S

4.12.2002 Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu

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Efficient resource allocation - planning and modelling

Mikko Syrjänen

Helsinki School of Economics

P.O.Box 1210, 00101 Helsinki, FINLAND

H E L S I N G I N K A U P P A K O R K E A K O U L UH E L S I N K I S C H O O L O F E C O N O M I C S

4.12.2002 2Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu

Introduction Dissertation: Efficient resource allocation -

planning and modelling Article: Non-discretionary and

discretionary factors and scale in DEA Different types of indicators in DEA Operational environment in DEA

Article targeted at DEA researchers and practitioners

H E L S I N G I N K A U P P A K O R K E A K O U L UH E L S I N K I S C H O O L O F E C O N O M I C S

4.12.2002 3Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu

Research problem DEA uses numerical indicators to describe

inputs, outputs and operational environment Some indicators are dependent on the scale

of operation (volume measures) and some are not (index measures)

These are not systematically separated in DEA literature

The goal of the article is to analyse the assumptions behind the existing DEA models and the requirements set for data.

H E L S I N G I N K A U P P A K O R K E A K O U L UH E L S I N K I S C H O O L O F E C O N O M I C S

4.12.2002 4Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu

Idea Formulate axioms in the case of CRS for

the models with non-discretionary factors Interpret the N-D factors - index vs.

volume measures Combine all the approaches in one model Emphasis on the formulation of the

assumptions and their implications Explain differences in results Guide model selection

H E L S I N G I N K A U P P A K O R K E A K O U L UH E L S I N K I S C H O O L O F E C O N O M I C S

4.12.2002 5Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu

Results Banker and Morey (1986) - Non-discterionary

inputs or outputs in DEA model VRS allow both volume and index CRS model requires volume measures Minor reformulation allows N-D index

measures Lovell (1994) and Ruggiero (1996) - Restrict

the reference set based on environmental indicators Only index type indicators

H E L S I N G I N K A U P P A K O R K E A K O U L UH E L S I N K I S C H O O L O F E C O N O M I C S

4.12.2002 6Mikko Syrjänen - Systeemianalyysin, päätöksenteon ja riskienhallinnan tutkijakoulu

Publishing Working paper submitted to EJOR Referees' comments

Clear contribution Shorten examples Give more exact definitions

Small modifications needed in the way of presenting the results